Correlation Between Satellogic Warrant and Plexus Corp
Can any of the company-specific risk be diversified away by investing in both Satellogic Warrant and Plexus Corp at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Satellogic Warrant and Plexus Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Satellogic Warrant and Plexus Corp, you can compare the effects of market volatilities on Satellogic Warrant and Plexus Corp and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Satellogic Warrant with a short position of Plexus Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Satellogic Warrant and Plexus Corp.
Diversification Opportunities for Satellogic Warrant and Plexus Corp
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Satellogic and Plexus is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Satellogic Warrant and Plexus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plexus Corp and Satellogic Warrant is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Satellogic Warrant are associated (or correlated) with Plexus Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plexus Corp has no effect on the direction of Satellogic Warrant i.e., Satellogic Warrant and Plexus Corp go up and down completely randomly.
Pair Corralation between Satellogic Warrant and Plexus Corp
Assuming the 90 days horizon Satellogic Warrant is expected to generate 106.56 times more return on investment than Plexus Corp. However, Satellogic Warrant is 106.56 times more volatile than Plexus Corp. It trades about 0.24 of its potential returns per unit of risk. Plexus Corp is currently generating about 0.15 per unit of risk. If you would invest 9.00 in Satellogic Warrant on August 30, 2024 and sell it today you would lose (0.02) from holding Satellogic Warrant or give up 0.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 54.76% |
| Values | Daily Returns |
Satellogic Warrant vs. Plexus Corp
Performance |
| Timeline |
| Satellogic Warrant |
| Plexus Corp |
Satellogic Warrant and Plexus Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Satellogic Warrant and Plexus Corp
The main advantage of trading using opposite Satellogic Warrant and Plexus Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Satellogic Warrant position performs unexpectedly, Plexus Corp can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Plexus Corp will offset losses from the drop in Plexus Corp's long position.| Satellogic Warrant vs. Satellogic V | Satellogic Warrant vs. Revelation Biosciences | Satellogic Warrant vs. Cepton Inc |
| Plexus Corp vs. Celestica | Plexus Corp vs. Benchmark Electronics | Plexus Corp vs. Flex | Plexus Corp vs. Jabil Circuit |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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